AFP Corporate Cash Indicators®

April 2020 Results:

U.S. businesses continued to accumulate cash and short-term investment holdings but at a slower pace in the first quarter of 2020. The quarter-over-quarter index decreased seven points to +24, and the year-over-year indicator decreased by one point to +32. Entering the first quarter, business leaders were displaying some signs of willingness to deploy their cash. However, it appears that the global pandemic caused them to deviate from their plans.

Why you should care about corporate cash holdings and the AFP Corporate Cash Indicators?

The
reason is simple: all other things held constant, optimistic companies
are more likely to deploy their cash holdings. Confident companies use
their cash to make growth-orientated expenditures (e.g., increased
capital expenditures, merger & acquisitions and hiring) and to
increase dividend payouts and share repurchases. Conversely, pessimistic
executives are likely to retain their cash holdings.

About the AFP Corporate Cash Indicators

AFP Corporate Cash Indicators is a trademark of the Association for Financial Professionals. All AFP Corporate Cash Indicators®
survey questions, data and reports are the copyrights of the
Association for Financial Professionals, and all rights are reserved.
For information about including the AFP CCI on your site, please contact
pr@afponline.org.